Skoda Set To Become Even Greener

MLADA BOLESLAV, CZECH REPUBLIC – Marc 12, 2013: Skoda is stepping
up its sustainability efforts under a new ‘GreenFuture’
program. The initiative, which forms an integral part of the ŠKODA
Growth Strategy 2018 and the environmental strategy of the Volkswagen
Group, will help current and future ŠKODAs become even more
fuel-efficient, and will see resources used in a more sustainable
fashion.

One of the first cars to be produced under the new GreenFuture
initiative is the forthcoming Octavia GreenLine. With combined fuel
consumption of 86.0mpg and CO2 emissions of just 87g/km, it will be the
most fuel efficient Octavia ever produced.

The drive to lower emissions and maximise efficiency also extends to
ŠKODA’s advanced production facilities. By reworking production
methods and introducing new processes, ŠKODA aims to reduce waste and
emission levels by 25 per cent per vehicle.

“ŠKODA has been honoring its responsibility for the
environment for many years,” says ŠKODA’s Chairman of the
Board, Prof. Dr. h. c. Winfried Vahland. “With
‘GreenFuture’ we will significantly step up and bundle our
efforts for increased sustainability once more. We want to offer
particularly environmentally-friendly automobiles and to manufacture and
sell them in an even more sustainable fashion.

“‘GreenFuture’ is a clear, measurable commitment by
the company and its employees towards environmental protection; we are
investing in our green future. ‘GreenFuture’ is part of our
Growth Strategy 2018 and, at the same time, an important part of the goal
of the Volkswagen Group to become the leading environmentally-friendly
automobile manufacturer in the world by 2018,” emphasizes
Vahland.

To achieve its aim of making ŠKODA an even more efficient
operation, ‘GreenFuture’ pulls together three core initiatives
that cover every aspect of the business: GreenProduct, GreenFactory and
GreenRetail.

Since 1991, the company’s direct expenditures for a sustainable
use of resources have amounted to more than 410 million EUR (£348,400,000).
In addition, ŠKODA has made investments in environmentally-friendly
manufacturing processes, energy-saving facilities and the enhanced
efficiency of its vehicles.

Through its GreenProduct initiative, ŠKODA is gearing up its
efforts to make cars even more fuel efficient and even more recyclable.

In order to accomplish this goal, the Czech manufacturer and the
Volkswagen Group are jointly working on modern technologies that contribute
towards energy-efficient operations and decreased environmental
pollution.

ŠKODA currently offers 48 models with emission figures of less than
120g/km, with 10 models featuring emissions of less than 100g/km. The brand
is also looking to alternative fuels as a way of delivering low-emissions
solutions to customers. The recently-launched ŠKODA Citigo CNG is
powered by natural gas and enjoys CO2 emissions of just 79g/km. A new
Octavia CNG is also in development and will be launched later this
year.

ŠKODA is also continuing its research into electric cars. A test
fleet of ten Octavia Green E-Line vehicles is being assessed on Czech roads
with the findings being analysed with environmental partners.

Vehicle production is another key element of the
‘GreenFuture’ strategy. By 2018, ŠKODA wants to organise
production in such a way that it will be 25 per cent more environmentally
friendly. Within the framework of GreenFactory, the focus will be on
reducing energy and water consumption and the amount of waste generated in
the manufacturing of one vehicle. Likewise, emissions such as CO2 and VOC
(Volatile Organic Compounds generated in small amounts during the painting
of car bodies), are to be lowered by one quarter.

One current example for resource-efficient production is the new press
line at the plant in Mladá Boleslav, which was commissioned at the
beginning of February. The new press line works more effectively and is
among the most modern facilities of its kind in Europe. It requires up to
15 percent less energy than comparable older facilities and is able to
temporarily store energy not needed at the time. Together with the
Volkswagen Group, ŠKODA invested about 66 million EUR (£57.5m) on this
facility alone.

Another important factor for an environmentally-friendly manufacturer is
the supply with heat and energy. For example, brown coal used for the
generation of heat and energy at the ŠKODA plant in Mladá Boleslav
will be substituted with biomass in the form of wood pellets. The CO2
emissions generated within the manufacturing process will be decreased by
about 45,000 tons of CO2 per year.

The third pillar of the ŠKODA sustainability strategy is
GreenRetail. This concerns the environmental protection in dealerships and
repair workshops. Campaigns such as the ‘Spring Cleaning 2012’
conducted in the Czech Republic have led to the removal of 95 tons of
unusable or discarded materials from the storage areas of service partners,
almost 90 percent of which could be reprocessed.

Environmental protection and sustainability are key issues for
ŠKODA. The ‘GreenFuture’ steering team reports directly to
the ŠKODA Board of Management. At the same time, the manufacturer
relies on the active cooperation of its approx. 26,500 employees.

One example of the high commitment of the ŠKODA team is the ongoing
campaign ‘A tree for each car sold in the Czech Republic’:
Since 2007, ŠKODA has been planting one tree for each car sold in the
country. To date, about 363,000 trees have been planted, with 60,000 more
expected to be introduced in 2013.